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9 14 pts Vivir Company incurs unit costs of $7 ($4 variable and $3 fixed) in making an assembly part for its finished product. A
9 14 pts Vivir Company incurs unit costs of $7 ($4 variable and $3 fixed) in making an assembly part for its finished product. A supplier offers to make 18,000 of the assembly part at $5 per unit. If the offer is accepted, Vivir will save all variable costs but no fixed costs. Do NOT enter a dollar sign. For example, if you are typing $10,000 as your answer, answer should be typed as 10,000 without any dollar sign. For any negative amounts, enter them using either a negative sign preceding the number such as -50 or parentheses such as (50). If the amount is zero, enter 0. . (a) Prepare an analysis showing the total cost saving, if any, Vivir will realize by buying the part by filling in all the blank spaces. Variable Manufacturing Make or Buy Net Income Make Buy Increase (Decrease) $ $ $ Costs Fixed $ Manufacturing Costs $ $ Purchase Price Total Annual Costs (b) Should Vivir Company make or buy the part? Indicate your response as either "Make" or "Buy
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